If you've ever seen a price listed two different ways and panicked, that's tax-inclusive vs tax-exclusive pricing — a quirk that confuses every traveller eventually.
Google this topic and you will get a hundred answers, half of them wrong. Here is the version that holds up. If you've ever seen a price listed two different ways and panicked, that's tax-inclusive vs tax-exclusive pricing — a quirk that confuses every traveller eventually.
Sticker price excludes sales tax. Tax added at checkout. Common in US/Canada retail.
Sticker price already includes VAT. What you see is what you pay. Common in EU/UK/Asia/Australia retail.
Net price × (1 + tax rate) = gross. $100 + 8% sales tax = $108.
Gross price ÷ (1 + tax rate) = net. £120 inc. 20% VAT → net £100, VAT £20.
Can I claim VAT back as a tourist? Yes in many countries — keep receipts and use the VAT refund desk at the airport.
Why do different US states have different sales tax? Sales tax is state and local — varies from 0% (Oregon) to 9.5%+ (some cities).
Whatever number you land on, sanity-check it against a second method or a quick estimate in your head.